ICO's are so easy to do, even the SEC wants to do one!
The Securities and Exchange Commission just created a fake website in order to help investors identify what a fraudulent ICO might look like.
Yes, they really did this.
The SEC announced today that they have created an ICO called "HoweyCoin", likely named after the Howey Test which is used to define whether or not an investment is a security.
The link to the HoweyCoin website can be found here:
https://www.howeycoins.com/index.html
The HoweyCoin pitch:
The selling point for the HoweyCoin has to do with the travel business/industry.
The website claims that most travel business's nickel and dime their customers with unnecessary fees that add up to billions globally.
HoweyCoin and blockchain are going to change all of that!
"HoweyCoins utilize the latest crypto-technology to allow travelers to purchase all segments without these limitations, allowing HoweyCoin users to buy, sell, and trade in a frictionless environment - where they use HoweyCoins to purchase travel OR as a government-backed, freely tradable investment - or both!"
(Source: https://www.coindesk.com/the-sec-just-launched-a-fake-ico-website-to-educate-investors/)
The website even comes equipped with a techy-sounding white paper!
This all sounds like a great idea, but remember this product isn't real.
Instead, any users that try to sign up or invest in the ICO will be redirected to the SEC's educational tools section aimed at helping investors spot fraudulent ICOs.
More about the fake coin and the SEC's thought process behind building it can be found here:
No token sale would be complete without Celebrity Endorsements!
(Source: https://www.howeycoins.com/index.html)
Owen Donley, of the SEC, said that the website incorporates many of the hallmarks seen in fraudulent token sales. Information he says is important in helping distinguish the frauds from the legitimate ones.
"Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals, but fraudulent sites also often have red flags that can be dead giveaways if you know what to look for."
(Source: https://www.coindesk.com/the-sec-just-launched-a-fake-ico-website-to-educate-investors/)
Why would you not buy what realdrummerstar is selling?!
Stay informed my friends.
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